The United States Is Going Broke

Those who focus on the U.S. national debt (and I’m one of them) keep wondering how long this debt levitation act can go on.

The U.S. debt-to-GDP ratio is at the highest level in history (106%), with the exception of the immediate aftermath of the Second World War. …

The U.S. budget deficit under Trump is approaching $1 trillion per year, similar to what we saw in 2010 and 2011 under Obama. …

And it looks like annual deficits will exceed the trillion dollar level as soon as next year when projected spending is factored in. … the national debt has registered compound annual growth of 8.8%, but only 6.3% for GDP. That’s not a sustainable situation. And it’s not at all clear that GDP will close the gap.Basically, the United States is going broke.

I don’t say that to be hyperbolic. I’m not looking to scare people. It’s just an honest assessment, based on the numbers.

Right now, the United States is roughly $21.6 trillion in debt. Now, a $21.6 trillion debt would be fine if we had a $50 trillion economy. The debt-to-GDP ratio in that example would be about 40%. But we don’t have a $50 trillion economy. We have about a $20 trillion economy, which means our debt is bigger than our economy. …

How do we get out of it?

For elites, there is really only one way out at this point is, and that’s inflation. And they’re right on one point. Tax cuts won’t do it, structural changes to the economy wouldn’t do it. Both would help if done properly, but the problem is simply far too large. Growth would have to greatly exceed current levels, and that’s just not in the cards.

Euro Pacific Capital CEO says the US economy is about to crash because of debt. US National Security Adviser John Bolton declared debt as a threat to society. Forbes writer John Mauldin says that a financial reset is expected in the 2020s, as does Willem Middelkoop, who believes gold may be part of a reset. Morgan Stanley believes the end of the current economic cycle may be in 2021. MIT pointed to changes in the 2020s. How much debt does the USA add daily? Does any of this tie in with biblical prophecies? Does Habakkuk 2 have applicability to the USA? Is it wise to try to discount debt and not pay it back in full? Dr. Thiel addresses these issues in the light of scripture.

The Bible also has an end time prophecy that those who read it may want to run:

2 Then the Lord answered me and said:

“Write the vision
And make it plain on tablets,
That he may run who reads it.
3 For the vision is yet for an appointed time;
But at the end it will speak, and it will not lie. (Habakkuk 2:2-3)

What is this end time prophecy about that should cause people to run? It is a prophecy about debt accumulation:

6 “Will not all these take up a proverb against him,
And a taunting riddle against him, and say,
‘Woe to him who increases
What is not his — how long?
And to him who loads himself with many pledges’?
7 Will not your creditors rise up suddenly?
Will they not awaken who oppress you?
And you will become their booty.
8 Because you have plundered many nations,
All the remnant of the people shall plunder you (Habakkuk 2:6-8)

A couple of years ago, James Dale Davidson of Strategic Investment put out a video that stated:

One day … maybe in a week from now, maybe in a few months from now … the full force of the financial hurricane will hit our shores.

You will wake up to the reality that the dollar is no longer the “world reserve currency.”

A white paper distributed by Project Censored describes what that world will look like:

The impact on daily living for the U.S. population could be severe. In addition to increased costs, states and cities will see their pension funds drained. The government will be forced to sell off infrastructure, including roads and transport, to private corporations. People will be increasingly charged for privatized utilities that were once regulated and subsidized. Commercial and private real estate will be worth less than half its current value. The negative equity that already plagues 25 percent of American homes will expand to include nearly all property owners. It will be difficult to borrow and impossible to sell real estate unless we accept massive losses. There will be block after block of empty stores and boarded-up houses. Foreclosures will be epidemic. There will be long lines at soup kitchens and many, many homeless.

Extreme?

Hardly. …

Day of Reckoning Fallout No. 1: The Collapse of the Dollar

The dollar will collapse, almost overnight. …

Day of Reckoning Fallout No. 2: Prices of Everything You Buy Will Double

Secondly, the price of everything we buy will double.

And not just because “when the dollar goes down, prices of every day goods go up.”

That is just the start. …

Day of Reckoning Fallout No. 3: Unemployment Triples

Right now the unemployment situation doesn’t look too bad. But once the dollar is no longer the “world reserve currency,” that financial sector will be blindsided. And while you might not be in that industry, those people make billions of dollars that they use to buy stuff — houses, cars, gadgets and more. My point is, there will be a ripple effect. I expect unemployment to triple.

Day of Reckoning Fallout No. 4: End of Social Security

Without the ability to print money, the 161 million Americans who have some form of government benefits will get hit hard. …

Day of Reckoning Fallout No. 5: Taxes Will Double

Tax breaks will be wiped off the books as Washington tries to stave off the carnage. This chart reflects how much money the U.S. government is collecting per year. It’s gone up nearly 50% in the last 5 years alone. Expect your overall taxes to increase from 30% to 40% to 50% and higher.

Day of Reckoning Fallout No. 6: Real Estate Will Plummet Home prices are going to fall by 50% in the next few years. …

Day of Reckoning Fallout No. 7: Stocks will Collapse by 60% (or More)

In the video transcript, James Dale Davidson, does not advocate the nation turning back to God, instead his survival plan is discussed:

Your Survival Plan …

It’s called The Day of Reckoning Survival Plan. …

When this next crisis hits, gold will again go up 300%, before going up even higher. …

I’m not the only one who believes this. In fact, in preparation for what’s to come, China secretly bought 604 TONS of gold since 2009, second only to … you guessed it, Russia.

A modern reality is that being the world’s de facto reserve currency has helped prolong the U.S.A.’s dominance.

When the U.S. dollar is no longer the world’s reserve currency, this will hurt the U.S.A. financially. Increasing debt, including “quantitative easing,” is a form of dishonest profits that is not something that God approves of and will punish the U.S.A. for (cf. Ezekiel 22:13-16).

Inflation will eventually hit the U.S.A. extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the U.S.A. Eventually, but not yet, the U.S.A. dollar will become worthless.

Will it always be straight downhill for the economy of the U.S.A.?

No.

There are some reasons to have some temporary optimism. The longer there is some economic stagnation in parts of the economy, the more demand tends to build up, and an increase in demand may prolong the economy. In addition, technological and other developments may temporarily support the U.S. economy—as can reductions of regulatory burdens.

Some policies of Donald Trump may help. The stock market in the U.S.A. responded favorably in the weeks after the election of Donald Trump. Various ones see his policies and his cabinet selections as a refreshing pro-business change that will fuel economic growth, investment, and prosperity (Dalio R. Reflections on the Trump Presidency, One Month after the Election. December 19, 2016 https://www.linkedin.com/pulse/reflections-trump-presidency-one-month-after-election-ray-dalio).

For years, I have written that because of improvements in various aspects of energy and other technology (some of which Donald Trump seems to support), the U.S.A. may experience even more of an energy export boom, such as with oil and natural gas, etc. that may prolong its days of economic prosperity. But prolonging is likely all that is possible as its destruction is prophesied (Daniel 11:39; Habakkuk 2:6-8).

Notice what was told to a king whose was prophesied to lose his kingdom:

27 Therefore, O king, let my advice be acceptable to you; break off your sins by being righteous, and your iniquities by showing mercy to the poor. Perhaps there may be a lengthening of your prosperity. (cf. Daniel 4:27)

Repentance can prolong prosperity, but promotion of sin leads to destruction. …

Since many are now questioning the role of the US dollar as the world’s reserve currency, more are looking into other currencies as well as gold. Gold will set records in US dollar terms.

It has been proposed that various nations around the world are already in the process of accumulating gold to one day overthrow the U.S. dollar—and that the “U.S. is unprepared for this strategic alternative to dollar dominance” (Rickards J. Axis of Gold. The Daily Reckoning, December 20, 2016).

When the U.S. dollar totally collapses people all around the world will consider that even if the Euro (or something similar) is strong, having a more gold-backed currency would be safer.

The collapse of the USA dollar will shake a lot of the world’s confidence in non-gold backed currencies.

The Europeans do not have to have a perfect currency, only one that is perceived to be in better shape than the USA dollar.

Having the European power acquiring more gold to back the Euro or possibly another future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe, even if the backing is only implied.

The debt accumulation policies of the Obama Administration, which are a massive acceleration of the previous policies of the Bush Administration, look like they will be continued by Donald Trump.

The increases in America’s debt are heading the world into the time when something other than the U.S. dollar will be valued as its reserve currency.

A Donald Trump Administration would need to make massive changes to possibly prevent this.

The Bible shows that a powerful international economic leader will arise (cf. Revelation 18) and it will NOT be the USA.

The USA, after having financial and other troubles (Mark 13:6-8) will finally be taken over. Not just financially, but according to the Bible militarily. Normally I would just quote Daniel 11:39, but this time let’s first look at an earlier verse:

23 And after the league is made with him he shall act deceitfully, for he shall come up and become strong with a small number of people. 24 He shall enter peaceably, even into the richest places of the province; and he shall do what his fathers have not done, nor his forefathers: he shall disperse among them the plunder, spoil, and riches; and he shall devise his plans against the strongholds, but only for a time. (Daniel 11:23-24)

The ‘he’ is the final European King of the North power, called the Beast of the Sea in Revelation 13:1-10. Notice that he gets in deceitfully and makes plans against “the strongholds.” Notice what Daniel says this leader will later do:

39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain. (Daniel 11:39)

In the 21st century, the strongest fortresses belong to the USA and to a much lessor extent, its Anglo-Saxon descended allies. And while some do not believe that America’s European friends could betray it, the Bible teaches otherwise:

1 How lonely sits the city
That was full of people!
How like a widow is she,
Who was great among the nations!
The princess among the provinces
Has become a slave!

2 She weeps bitterly in the night,
Her tears are on her cheeks;
Among all her lovers
She has none to comfort her.
All her friends have dealt treacherously with her;
They have become her enemies. (Lamentations 1:1-2)

The USA and Great Britain (including its Anglo-Commonwealth members, like Australia and Canada) were “great among the nations.” And the Bible is clear that betrayal is coming from national FRIENDS!

That betrayal will result in the complete end of USA dominance in the world.

Politicians will NOT be able to save the USA, nor its Anglo-Saxon descended allies (UK, Canada, Australia, and New Zealand).